FIRST AIRED: October 16, 2018

Nice work! Enjoy the show!

×

You’re busy. We get it.

Stay on top of the news with our Editor’s Picks newsletter.

US Edition
Intl. Edition
Unsubscribe at any time. One click, it’s gone.

Thanks for signing up!

×

Transcript

00:00:01
>> A third of Japanese companies now say they're feeling the heat from Trump's trade war with China. That figure from an anonymous Reuters poll soaring from just 3% in May, as a growing number of companies become collateral damage to the fall out between the world's two biggest economies.
00:00:19
Malcolm Foster is following the story for Reuters.>> It's not immediately clear what kind of impact this will have on global consumers, but it could make it more difficult to find items, it could raise prices. It certainly disrupts the supply chain of a lot of companies. Japanese companies have a lot of factories in China where they produce goods there shipped to United States.
00:00:43
A lot of Japanese parts and equipment are also exported to China to use to produce goods which are then shipped to United States. So in both ways, that's how Japan is being affected by this trade conflict.>> 40% of the companies surveyed said they thought the trade conflict could disrupt supply chains over the next three years.
00:01:07
A small fraction have even begun mulling the idea of pulling out of China all together. Worried about what will happen to their exports if the trade spot escalates.>> This does become a full-fledged war continues for a long time, it could really hurt the Japanese economy. It could keep companies from investing, it could affect consumers' spending, and really damping growth in Japan.
00:01:30
And in that, could in turn, have a ripple effect on the global economy.>> The US and China slapped it for top tariffs on each other's goods on September, and there are still threats of more as US President Trump tries to make good on campaign promises to level the trading playing field.
00:01:48
Of the companies who said they were considering a move out of China, none were considering a move into the United States.